Development Aid: Show Them the Money?

In the last decade ... the governments of the nations where most of the world’s poorest actually live have begun to turn to an idea that seems radical in its simplicity: Solve poverty and spur development by simply giving out money. In Brazil and Mexico, India, China, South Africa, and dozens of other nations, hundreds of millions of poor people are now receiving billions of dollars in cash grants. The programs vary widely, but typically the money — disbursed through banks, post offices, state lottery offices, and even, in rural Africa, ranging armored cars with ATMs on them — goes directly to the poor, rather than being spent on particular projects by government or international aid officials.

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In the last decade ... the governments of the nations where most of the world’s poorest actually live have begun to turn to an idea that seems radical in its simplicity: Solve poverty and spur development by simply giving out money. In Brazil and Mexico, India, China, South Africa, and dozens of other nations, hundreds of millions of poor people are now receiving billions of dollars in cash grants. The programs vary widely, but typically the money — disbursed through banks, post offices, state lottery offices, and even, in rural Africa, ranging armored cars with ATMs on them — goes directly to the poor, rather than being spent on particular projects by government or international aid officials.